Millennials sluggish with medical bills: 5 study findings

Millennials tend to pay medical expenses at a slower rate than baby boomers or Generation X consumers, according to a new TransUnion study.

For the study, researchers compared Trans Union credit data for Gen X and millennial consumers.

Here are five findings.

1. Millennials use fewer credit cards than Gen X consumers. Millennial usage of private label cards is 23 percent lower than Gen X consumers, while their usage of bankcards is 22 percent lower.

2. Millennials prefer to make every day purchases using cash and debit cards, and are more than twice as likely as Gen Xers to indicate debit cards as their top payment choice, according to TransUnion.

3. With regards to credit cards, subprime millennials carry a serious delinquency rate of 23 percent, which is lower than the Gen Xer's rate of 28 percent.

4. Millennials tend to pay medical expenses at a slower pace compared to other generations, according to TransUnion. The study found 74 percent of millennials did not pay their medical bills in full in 2016, a 6 percent increase from 2015. That compares to 68 percent for Gen X consumers and 60 percent for baby boomers. The study's authors did not provide specific reasoning for this trend, except to say the fact millennials prioritize other expenses such as housing and transportation over medical bills is a possible contributing factor.

5. Millennials' slower rate of paying medical bills is occurring in a healthcare environment where patients are taking on greater financial responsibility for their care. In fact, the study found healthcare provider revenue collected directly from patients increased from less than 10 percent to more than 30 percent over the last 10 years.

 

 

More articles on healthcare finance:
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6 latest hospital credit downgrades

 

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